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Ministry of Petroleum & Natural Gas03-June, 2011 18:14 IST

Clarification on Kerosene Allocation to the State of Gujarat

Reports have appeared in a section of press that the Centre has curtailed the kerosene quota of Gujarat. As per the Ministry of Petroleum and Natural Gas, the facts are as follows:

The kerosene allocation to the State of Gujarat during the year 2005-06 was 955730 KL. This allocation has come down to 920556 KL in the year 2010-11 and 673584 KL in 2011-12. During 2005-06 to 2010-11, the number of LPG connections in the State of Gujarat had increased from 47.39 lakh to 62.41 lakh which is approximately a 32% increase. As against national coverage of 53%, LPG coverage in Gujarat is 55% (as on 1st January, 2011). Further about 6.5 lakh households enjoy piped natural gas in the State of Gujarat. In view of this, requirement of kerosene for PDS has correspondingly come down.

The State Government is vested with the authority to reduce the kerosene allocation of LPG customers and piped natural gas customers. As per the norms of allocation of PDS SKO adopted by the State of Gujarat, card holders with LPG connection are not entitled to PDS SKO. The reductions in kerosene quota in the State of Gujarat are only a reflection of a need for tighter administration in the public distribution system to reflect the LPG customer population on ration cards. Gujarat during the year 2010-11 had per capita availability of kerosene of 15.7 litres per annum in comparison to the per capita availability which ranges between 6 to 8 litres per annum in the States like Himachal Pradesh, Kerala, Haryana, Andhra Pradesh, Rajasthan and Uttar Pradesh. As the kerosene requirement for an individual remains the same throughout the country, there was a need to bring kerosene quota of Gujarat in line with the national average which stands at 9.5 litres per person per year.

The reduction in kerosene quota has also taken place in States like Andhra Pradesh, Tamil Nadu, Kerala, Maharashtra, Haryana, Punjab and Delhi with stiffer cuts in Delhi and Puducherry and cuts of similar order in Maharashtra, Goa, Chandigarh and Himachal Pradesh.

Diversion of PDS SKO for adulteration of auto fuel by unscrupulous elements cannot be ruled out in view of substantial price differential. With increase in LPG coverage, surplus of kerosene meant for cooking purposes can be diverted for adulteration. This is a major issue in Gujarat and also in other States of the country. In view of this situation, Government of India has been taking several steps to plug the menace of diversion of subsidized PDS SKO including rationalization in allocation of this product. This will naturally prevent surplus availability of subsidized kerosene for adulteration. As such, reduction in allocation in States/UTs having substantial LPG penetration was felt essential.